Verizon iPhone to Boost Qualcomm

NEW YORK ( TheStreet) -- The Verizon ( VZ) iPhone looks to be a boom for Qualcomm ( QCOM) and a bust for Research In Motion ( RIMM), according to Morgan Stanley.

Apple's ( AAPL) introduction of a CDMA version of the iPhone Tuesday means Qualcomm will collect not only a patent royalty as it does with the AT&T iPhone, but since the Verizon iPhone also uses Qualcomm's wireless chip, the company will enjoy an added pop to its chip revenue.

This isn't exactly a surprise, given that Qualcomm is the CDMA standard bearer for the industry, but by Morgan Stanley's Ehud Gelblum's very bullish estimate, Qualcomm could see a significant bump up in sales.

Gelblum predicts that pent-up demand and a large number of iPhone 3GS owners coming off contracts at AT&T ( T) will help Apple sell about 13 million Verizon iPhones this year. That is well above the 9 million number many of his Wall Street peers have targeted.

Using the 13 million Verizon iPhone sales number, Gelblum figures the new CDMA chip revenue will add $130 million to the top line and translate to almost a nickel a share of added profit for the year.

There is a tradeoff, however. The Verizon iPhone will likely rob sales from RIM and Motorola. Heavy Verizon iPhone sales will cost RIM about 800,000 BlackBerry sales (units) in the first quarter and trim Motorola's Droid sales by 400,000, Gelblum estimates.

Qualcomm shares have been up 15% in the past three months as investors continue to see the San Diego chip shop as one of the key suppliers to the smartphone surge. And RIM, which hit a one-year low in August, has been up 30% in the last three months, defying naysayers.

Jack Dorsey's turnaround showed more signs of taking hold in the fourth quarter. The company posted its first GAAP profit, and the improved outlook could lead to something else that investors have long awaited -- an acquisition.